- AI-themed cryptocurrencies remain under pressure despite strong earnings from major tech firms.
- Microsoft and Meta reported significant revenue gains fueled by Artificial Intelligence initiatives.
- Broad crypto markets saw volatility as Federal Reserve comments weighed on risk assets, with over $200 million in liquidations reported.
- Bitcoin faced a brief drop, while Ether showed resilience as institutional demand continued.
- Additional developments include a temporary outage on the Polygon network and reflections on Ethereum’s long-term evolution.
Major U.S. technology companies reported earnings late Wednesday, with Microsoft and Meta highlighting strong gains from artificial intelligence (AI) investments. These announcements occurred as Asian markets opened, leaving AI-related crypto tokens muted despite upbeat tech results.
Microsoft posted a 27% increase in cloud revenue, reaching $46.7 billion in the quarter, boosted by growing demand for data center capacity supporting AI workloads. Meta saw its revenue climb 22% year-over-year to $47.5 billion, attributing the growth to AI-powered advertising, improved conversion rates, and increased engagement on platforms such as Facebook and Instagram.
AI-related tokens tracked by CoinGecko, including TAO, NEAR, ICP, and RENDER, fell by 1.4%. This is in contrast to the more stable CoinDesk 20 index, which remained flat and was trading below 4,000 points. Market observers noted that, typically, the performance of AI tokens relates closely to earnings from large technology firms, with the category’s total value dropping from over $10 billion to under $5 billion as bitcoin rose in dominance.
Traders paused activity across crypto markets following hawkish signals from U.S. Federal Reserve Chair Jerome Powell, who warned that tariff-driven inflation could increase uncertainty for risk assets. “With risk appetite fading and macro messaging turning less predictable, markets may remain in a holding pattern until participants gain clarity on inflation direction and policy response for the next few days or weeks,” stated market maker Enflux in a note.
In crypto asset movements, bitcoin experienced a drop below $116,000 during volatile trading, pushing total liquidations over $200 million. Ether (ETH) remained above $3,800, benefiting from institutional interest, including purchases by firms such as SharpLink Gaming. In commodities, Gold fell 1.17% to $3,288 per ounce on the back of robust U.S. economic data.
Elsewhere in digital assets, Polygon experienced a one-hour outage weeks after a complicated system update. Meanwhile, community members reflected on Ethereum’s capacity to adapt over a decade while maintaining its core values, as covered in a recent report.
Asia-Pacific equity markets traded mixed, absorbing the effects of new U.S. tariffs and awaiting the Bank of Japan’s upcoming policy decision. The Nikkei 225 showed little movement, while the S&P 500 edged down 0.12% following signals that U.S. interest rates will likely remain steady for now.
Other industry headlines included comments from supporters of former President Trump about the future of U.S. decentralized finance, covered by CoinDesk.
✅ Follow BITNEWSBOT on Telegram, Facebook, LinkedIn, X.com, and Google News for instant updates.
Previous Articles:
- Apple Patches Zero-Day Flaw Impacting Safari, iOS, macOS, watchOS
- Samourai Wallet Founders Plead Guilty, Face Up to 5 Years Prison
- Hackers Spread JSCEAL Malware via Fake Crypto Apps, Facebook Ads
- Chainlink (LINK) Eyes $28 as Bullish Momentum Builds for August
- Bank of Korea Renames Digital Currency Unit, Eyes Stablecoin Bills
